Arrowtown now the country's most expensive postcode
Tuesday, 14 April 2026
The country’s most expensive postcode has shifted, with Arrowtown leading a growing cluster of multi-million dollar markets in the South Island.
Arrowtown has been crowned Aotearoa’s most expensive postcode, with average asking prices topping $3 million, as new data points to a changing shape at the top end of the property market.
Figures from Trade Me’s latest Property Pulse report show the Central Otago town sitting at $3,026,200 so far this year, overtaking traditional Auckland strongholds and signalling a broader shift in where high-end buyers are looking.
Auckland suburbs still dominated the rankings overall, taking 15 of the top 20 spots, but Parnell on $2.64m and Westmere with $2.59m are now behind Arrowtown, with former frontrunner Remuera slipping to fourth and Ponsonby rounding out the top five.
Trade Me Property customer director Gavin Lloyd said Arrowtown’s rise reflected growing demand for premium lifestyle locations.
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“Arrowtown hitting the $3 million mark is a massive milestone. It’s no longer just a holiday destination, it’s fast becoming a status postcode for those looking for a mix of heritage charm and alpine luxury,” he said.
He said while Auckland still dominated 15 of the top 20 most expensive spots, the South Island was making its presence felt with Arrowtown, Wānaka, Queenstown and Christchurch’s Fendalton all now firmly in the multi million-dollar club.
The trend comes even as the broader market shows signs of stabilising, with the national average asking price sitting at $862,550 in March — flat year-on-year and down 2.5% from February while new listings rose 2% month-on-month, while search activity climbed 5%.
“We are seeing a fairly balanced market right now,” Lloyd said.
'Supply is up, but so is demand. It’s a great time for buyers who have been sitting on the sidelines, as they have more choice than they did a year ago, particularly in regions such as Otago and Southland where new listings have jumped by 14% and 15% respectively'.
At the same time, first home buyers continue to play a significant role in the market, accounting for more than 27% of purchases in the first three months of the year — well above the long-term average of around 22%
Cotality NZ’s chief property economist, Kelvin Davidson, said in Auckland, their share was even higher - about 30% - with Hamilton at 33%, and the wider Wellington area soaring, at 37%. Both Upper Hutt and Lower Hutt were higher at 41%.
Gisborne, Napier, and Palmerston North were at 31% with Hastings and Invercargill both on 29%.
Davidson said lower house prices and reduced mortgage rates were helping, as did access to KiwiSaver for at least part of their deposit.
He said investors were also re-emerging, with mortgaged multiple property owners lifting their share of activity back to around 24%.
“Taking a look ahead, the Iran conflict has put an extra layer of uncertainty over that potential economic recovery, as well as the housing market outlook too. Obviously the hope is that the ceasefire becomes permanent and we can get back to ‘normality’. But there’s always the risk it doesn’t prove lasting and, even if it does, there’ll still be some economic dislocation in the near term as a rebuild process gets underway.